Yesterday, the finance ministry announced that the retail price of non-subsidised RON 95 petrol can be set at RM2.60 per litre throughout the month of October. This price will in fact apply to those that are usually not eligible for the advantages provided by Budi Madani RON 95 (Budi95) subsidy mechanism, by which all eligible Malaysian residents with a legitimate driving licence pay RM1.99 per litre for the fuel from today, September 30.
Based on finance minister II Datuk Seri Amir Hamzah Azizan, the unsubsidised price is being fixed for a month to permit the general public to regulate to the workings of Budi95 before it’s floated based on global prices, because the Recent Straits Times reports.
This may not have any impact on subsidised RON 95 under Budi95, with the retail price remaining fixed at RM1.99 per litre at an allocated 300 litres monthly for each eligible user.
“We are going to keep the RM2.60 price stable for one month to get everybody comfortable with this price. After that, much like diesel, prices can be revised weekly under the automated pricing mechanism, which reflects global market prices as we also have to source supplies internationally,” he said.
He said that fuel prices would follow market movements, rising when global prices increase and falling when they refuse, much like the mechanism applied to diesel. Citing the removal of blanket diesel subsidies last yr, he said the retail price was RM3.35 per litre on the time but has since fallen to about RM2.93, in step with global oil prices.
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This Article First Appeared At paultan.org
